Ernest1,Personally I'm very confident there is nothing untoward...

Ernest1,

Personally I'm very confident there is nothing untoward in the sp. A little surprising, but possible reasons? Not a hot sector atm. Maybe the stapled structure puts people off. Maybe a flow of stale holders from old, selling in frustration with its failure to rebound much (when most around have). It's almost being priced as thought the mgmt contract holder will gauge future cashflows. Maybe people forget this is all inhouse now. Also very low key promotion by the group or brokers. They haven't had to suck up to the brokers for capital raisings - so its not strongly promoted by any of them.

I'm banking on quality outing in the end. Attended the AGM and found discussions with the MD and board very insightful. Some large holders themselves, and am very confident in some quality people and to be holding with them.

On strategy, I like the added exposure to Gladstone. Also Eynesbury sales (near Melbourne) are well up on last year. There is potentially much upside on this whole town project, provided the sales momentum builds - which it's doing. Keep an eye out for a further increase in the project size.

I could go on for pages, but suffice to say I've pulled cash out of base metal plays that have run hard, and dropped more into sedate old GPM. Been focussing on profitable well run businesses, without fx exposure.

While I think housing will remain flat, their house and land packages struck be as superb value in the market. A well run business competitive with anyone, running an a 20% GP margin.

IMO only macro events could reduce profit drastically - high unemployment, much higher interest rates or another oil shock. Current SP allows people to buy into inventory at 60% of the written-down developers cost - a nice free margin of safety which I'm happy to take.

Cheers